Here’s the ANZ dividend forecast through to 2026

ANZ Group Holdings Ltd (ASX: ANZ) shares and the rest of the big four banks are popular with income investors.

And it isn’t hard to see why.

The big four banks are among the biggest dividend payers on the Australian share market.

In fact, in FY 2023, ANZ paid out a total of $4,559 million in dividends to its 531,000 shareholders.

Will this trend continue in the future? Let’s take a look at what analysts are forecasting for the ANZ dividend through to FY 2026.

ANZ dividend forecast

According to a note out of Goldman Sachs, its analysts are expecting the bank to pay a 75% franked $1.62 per share dividend this year.

While this is down from $1.75 per share in FY 2023, that’s because the bank declared an additional one-off unfranked dividend of 13 cents per share with its result to make up for a lack of franking credits.

At the time, the ANZ board explained:

The proposed 2023 Final Dividend is 94cps, partially franked at 56%. This comprises an 81cps dividend partially franked at 65%, and an additional one-off unfranked dividend of 13cps. The level of franking reflects the geographically diverse nature of our business, as well as the timing of the proposed Suncorp Bank transaction. The Board recognised that lower franking may not have been anticipated by some shareholders. In recognition of this, and given our strong performance, the Board agreed that the one-off unfranked dividend was appropriate.

So, that’s a $1.62 per share dividend in FY 2024. Based on the current ANZ share price of $29.04, this will mean a very attractive 5.6% dividend yield.

What about FY 2025 and FY 2026?

If you like consistency, then you may like ANZ shares.

That’s because Goldman Sachs is expecting another 75% franked $1.62 per share dividend in FY 2025, which will mean another 5.6% dividend yield.

And then once again in FY 2026, the broker is forecasting a third 75% franked $1.62 per share dividend in a row. This will mean yet another 5.6% dividend yield for income investors.

The post Here’s the ANZ dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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